NNPC strikes $875.75m deal with petroleum development company

The Nigerian National Petroleum Corporation has signed an $875.75m funding and technical services agreement and alternative financing deal for the Oil Mining Lease (OML) 65 operated by Nigerian Petroleum Development Company.

The Corporation in a statement on Sunday by its spokesman, Mr. Ndu Ughamadu in Abuja, said it signed the deal with CMES- OMS Petroleum Development Company.

The Chief Financial Officer of the NNPC, Mr Umar Ajiya, who signed for the corporation, explained that the package entails comprehensive financing solution that addresses the complex issues involved in growing NPDC’s production.

He added that it would help minimise its cost of capital, and maximise its value preservation.

On CPDC’s right to provide technical services, he listed the field of consideration in this regard to include: drilling and completion services; building capacity and technology transfer; generating employment opportunities for youths.

This would have an attendant positive multiplier effect on the nation’ s economy, among other considerations, Ajiya said.

Ajiya noted that the expectation was that the collaboration between the NPDC and CPDC would translate in real terms to the efficient execution of the scope of activities for the optimal development of the OML 65 asset within cost and schedule, while maximising value to all the stakeholders.

He informed that the project was expected to ramp up production at OML 65 from 900 barrels per day to 60, 000 barrels per day, with average production over field life at 40,000 barrels per day.(NAN)